European postal services will be fully deregulated by 2009 under proposals introduced today by the European Commission.
The proposals by Internal Market Commissioner Charlie McCreevy are the final part of an EU initiative to open up the postal sector to competition.
Letters weighing up to 50 grams, a sector that is currently protected, will be fully opened to competition.
"I firmly believe that completing the Internal Market for postal services is vital for sustaining the progress and results achieved to date," Mr McCreevy said.
"Without full market opening, EU postal markets will be increasingly unable to meet the challenges of the communications revolution," he added.
Because post is seen as an essential service which is covered by special rules on universal service provision, Member States will still have to ensure that the public gets a universal, minimum postal service.
Under the proposals member states will be allowed to fund a universal service across all of a country by using public money or cross-subsidies.
There is already full liberalisation in Britain and Sweden, with Finland, Germany and the Netherlands catching up.
Operators from these five countries, including Dutch TNT and Deutsche Post, account for about half of total EU mail deliveries.
However, 10 countries - including France, Poland, Spain and Belgium - which account for the other half of EU deliveries want stronger guarantees on funding the universal service.
